Crypto license in Latvia

EU MiCA (CASP)Last reviewed 2026-08-24

Do you need a crypto license in Latvia?

Yes, but the framing matters. Latvijas Banka is authorizing crypto firms for the first time rather than replacing a national licence, because Latvia never ran the kind of dedicated virtual asset regime its Baltic neighbours became known for.

Read this before you plan an application

Latvia is regularly marketed alongside Estonia and Lithuania as a cheap Baltic crypto licence. It never had a comparable regime, so its low application fee reflects a different regulatory history rather than an easier MiCA process.

Latvia is the odd one out among the Baltic states, and the difference is worth understanding before comparing fees. It never operated a cheap, high volume virtual asset licence, so there is no collapsed population of former holders here and no legacy route anyone can still be sold. Crypto activity fell under general anti-money-laundering obligations until the Crypto-Asset Service Law took effect on 30 June 2024 and made Latvijas Banka the competent authority under MiCA. The result is a young and very small register: when the central bank authorized Paybis Europe it described the firm as only its third crypto-asset service provider.

Regime: EU MiCA (CASP)
Regulator: Latvijas Banka (Bank of Latvia)
Framework: Crypto-Asset Service Law (2024)
Application fee: EUR 2,500 for reviewing an authorization application, published by Latvijas Banka
Minimum capital: EUR 50,000, EUR 125,000 or EUR 150,000 depending on the class of services, set EU-wide by MiCA Annex IV
Annual fee: An annual supervision fee applies once authorized, charged as a share of crypto-services revenue and subject to a minimum amount
Time to license: MiCA allows 25 working days for a completeness check and 40 working days for the decision that follows. Latvijas Banka's pre-application stage sits ahead of that clock, so plan for months rather than weeks from first contact to authorization.
Foreign owners: Non-residents may own and direct a Latvian applicant. MiCA imposes no nationality condition on ownership, and Latvia sets no residency requirement for directors, though the company itself must be Latvian and genuinely governed from Latvia.

The framework

The Crypto-Asset Service Law took effect on 30 June 2024 and designated Latvijas Banka, the central bank, as the national competent authority under MiCA. Authorization requirements for crypto-asset services applied from 30 December 2024, in line with the rest of the European Union.

What you can apply for

Latvijas Banka authorizes the same three classes as every other member state, because they are set by MiCA Annex IV rather than nationally. Custody and administration is a Class 2 service, alongside exchanging crypto-assets for funds or for other crypto-assets, at a EUR 125,000 floor. Operating a trading platform is Class 3 at EUR 150,000.

What came before, and why it matters

Latvia had no dedicated licensing regime for virtual asset businesses before MiCA. Firms were treated as obliged entities for anti-money-laundering purposes rather than as holders of a sectoral licence. That is the single most important fact about Latvia in this comparison, because it means the marketing that groups Latvia with Estonia and Lithuania as a cheap Baltic licence jurisdiction is describing a history Latvia does not have.

Costs

Latvijas Banka publishes a fee of EUR 2,500 for reviewing an authorization application. An annual supervision fee applies once authorized, charged against crypto-services revenue and subject to a minimum. Capital follows the EU-wide table.

The process

Latvijas Banka runs a pre-application phase in which it looks at shareholders, officers, the origin of capital and the business model before a formal application is filed. The application itself needs a programme of operations, the prudential safeguards MiCA requires, and a description of governance, including group level governance where the applicant belongs to a regulated group.

What to watch

The register is small enough to check by hand, which makes it a useful reality test. If an adviser describes Latvia as a well trodden route, the number of firms actually authorized is the answer to that claim.

License classes in Latvia

License classes, the activities each covers, and their fees and capital requirements where published.
Class	Covers	Fee	Capital
Class 1	Reception and transmission of orders, execution of orders on behalf of clients, placing of crypto-assets, transfer services on behalf of clients, advice on crypto-assets, portfolio management of crypto-assets	Not published	EUR 50,000
Class 2	Custody and administration of crypto-assets on behalf of clients, exchange of crypto-assets for funds, exchange of crypto-assets for other crypto-assets	Not published	EUR 125,000
Class 3	Operation of a trading platform for crypto-assets	Not published	EUR 150,000

What the application requires

Latvian company, usually a SIA
Paid up own funds matching the class applied for
Anti-money-laundering policies and a working compliance function
Documented governance, including group level governance where relevant
Fit and proper clearance for shareholders and officers
Programme of operations covering each service to be provided

The application process

Pre-application
Latvijas Banka reviews shareholders, capital origin and the business model before a formal filing
Form the company
Register a Latvian company and pay in the required capital
Apply
File the application with the programme of operations and governance documentation, and pay the EUR 2,500 fee
Review
The central bank runs the completeness check and the substantive assessment
Authorization
On approval the firm enters the EU register and can passport across the bloc

Costs and taxation

The EUR 2,500 application fee is published by Latvijas Banka and is genuinely low, but it is not the number that decides a budget. Capital, the compliance build and the ongoing supervision fee all matter more.

Latvia taxes company profits only when they are distributed. The headline rate is 20 percent, but the taxable base is divided by 0.8 before the rate applies, so the effective charge is 25 percent of the net amount actually paid out.

Who is licensed today

Latvijas Banka announces authorizations individually and the roster is still in single figures: it described Paybis Europe as its third crypto-asset service provider. Authorized firms also appear in the pan-EU register maintained by ESMA.

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Frequently asked questions

Did Latvia have a crypto licence before MiCA?

No. Crypto activity fell under general anti-money-laundering obligations rather than a dedicated licensing regime, which is what separates Latvia from its Baltic neighbours.

How much does a Latvian crypto authorization cost?

Latvijas Banka publishes a EUR 2,500 application review fee, separate from the capital MiCA requires and from the annual supervision fee.

Who regulates crypto companies in Latvia?

Latvijas Banka, the central bank, which became the competent authority when the Crypto-Asset Service Law took effect in June 2024.

How many crypto companies are licensed in Latvia?

Very few. The central bank described Paybis Europe as only its third authorized crypto-asset service provider.

Is Latvia the same as Estonia for crypto licensing?

Not historically. Both now apply MiCA, but Latvia never ran the high volume pre-MiCA regime that Estonia became known for.

Sources

Buying bitcoin as an individual is a different question entirely: how to buy bitcoin in Latvia covers exchanges, payment methods and legality for residents, and the crypto license hub compares every jurisdiction we track.